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CFTC Proposes Rules on Large-trader Ownership and Control Forms

CFTC proposed new rules and related forms to enhance its identification of futures and swap market participants.

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On June 28, 2012, the CFTC proposed Dodd-Frank rules and related forms to enhance its ability to identify futures and swap market participants ...show full speedread

On June 28, 2012, the CFTC proposed Dodd-Frank rules and related forms to enhance its ability to identify futures and swap market participants. The rules would:

Expand the CFTC's large trader reporting rules and forms.

Enhance and automate the CFTC's reporting programs.

Allow the CFTC to collect derivatives trading account ownership and control information through a dedicated ownership and control report for those accounts that are active on designated contract markets and swap execution facilities.

The new information collection would help reveal connections of ownership or control between trading accounts that might otherwise appear unrelated.

Expand the CFTC's large trader reporting rules and forms to help the CFTC identify "volume threshold accounts," defined as individual trading accounts that trigger volume-based derivatives reporting thresholds on a "registered reporting market" (a designated contract market (DCM) or swap execution facility (SEF)) regardless of whether the activity results in reportable positions. These volume threshold accounts can include trades in futures, options on futures, swaps and any other products traded on or subject to the rules of a DCM or SEF.

Enhance and automate the CFTC's existing derivatives position and transaction reporting programs by requiring the electronic submission of trader identification and market participant data on amended Forms 102 and 40, and on new Form 71.

Allow the CFTC to collect derivatives trading account ownership and control information through a dedicated ownership and control report for trading accounts that are active on reporting DCMs or SEFs. This new proposed rule replaces a previously proposed rule, which has now been withdrawn.